Final answer:
The income statement constructed using variable costing would include the total variable costs of $45,400, which is the sum of the variable cost of goods sold and variable selling and administrative expenses. Fixed costs are excluded from COGS and treated as period costs under variable costing. To calculate exact income, revenue figures would be necessary.
Step-by-step explanation:
The question pertains to the construction of an income statement using variable costing, a concept in management accounting that includes only variable costs - both production and selling & administrative expenses - when computing the cost of goods sold (COGS). Fixed costs, such as fixed manufacturing overhead and fixed selling and administrative expenses, are not included in COGS but are treated as expenses of the period. The variable costs provided are $39,200 for variable cost of goods sold, and $6,200 for variable selling and administrative expenses. Under variable costing, the income statement reflects only the costs that vary with production volume, which means that the fixed costs are excluded from product costs. Fixed costs, commonly known as 'overhead', are instead treated as period costs and are expensed in full in the period they occur. Spreading the overhead means allocating the total fixed cost over the units produced, which results in the average fixed cost. As production increases, the average fixed cost per unit decreases because the same total amount of fixed overhead is distributed over more units, thereby reducing the average fixed cost per unit. This illustrates why the average fixed cost curve is a downward sloping curve moving from left to right.
Given the variable and fixed costs data, the variable costs would be the sum of variable cost of goods sold ($39,200) and variable selling and administrative expense ($6,200), which totals $45,400. Since the question is about an income statement prepared using variable costing, we cannot calculate the actual income without knowing the revenue figures. The income statement would only show variable costs and would exclude fixed manufacturing overhead and fixed selling and administrative expenses from the calculation of COGS.